Penn Nationwide Scoops Up Illinois Games Operator, Posts Strong Q2 Financials

Penn Na<span id="more-1889"></span>tionwide Scoops Up Illinois Games Operator, Posts Strong Q2 Financials

Through its acquisition of PSG, Penn National will gain 1,100 terminals across Illinois.

Penn nationwide Gaming, Inc. will acquire Prairie State Gaming (PSG), an Illinois operator of video gaming terminals (VGTs), for a fee that is undisclosed. The company adds the acquisition to its collection of some 31,000 video gaming devices in 26 facilities across America.

While Illinois lawmakers squabble about their budget plans, with the resulting standoff meaning that large tax profits from the state’s VGTs will be held in limbo until they could concur terms, Penn National is seeking to get its own slice with this industry that is lucrative.

The deal, for an undisclosed transaction that is all-cash might find the Pennsylvania-based casino, racetrack, and racino operator acquire 1,100 terminals across a network of 270 different pubs and retail gaming establishments statewide.

Big Business

In Illinois, anywhere with a liquor license is permitted to use a VGT, and it’s big business. But that reality has created something of a challenge to the state’s casino industry.

The VGT industry raked in $72.8 million in revenue in July, compared to the combined $118.1 million in revenue of Illinois’ ten gambling enterprises, according to Fantini Gaming Research. For Penn National, which owns three of those casinos, it’s a thought process of ‘if you can’t beat ’em, join ’em.’

PSG, which is probably the VGT operators that are largest in Illinois, produced almost $10 million in income for the fiscal 12 months ending June 30th.

According to Jay Snowden, chief operating officer of Penn National, the acquisition represents the latest phase in a long-term strategy for ‘growth through accretive acquisitions.’

In the company agreed to purchase the Tropicana in Las Vegas for $360 million, making it the operator’s second Sin City property april. The company first bought off the debt for and in of 2011 finalized its purchase of the M Resort and Casino on the South Las Vegas Strip june.

Penn National currently operates 26 casino, racinos, and racetracks in 16 US and one jurisdiction that is canadian with the majority found in the Midwest and the South of the United States.

Placed for Growth

The deal will further cement the business’s position in Illinois, said Snowden. ‘We believe this acquisition provides us a solid platform for future growth in the Illinois VGT market and potentially other states where this form of gaming is authorized.

‘PSG is certainly one of Illinois’ many respected VGT operators, by having a strong track record of regulatory compliance and a reputation for reliable around the clock solution supported by one of many industry’s most experienced groups,’ he added.

Penn National’s present economic performance has made the investment community sit up and simply take notice. Its Q2 results for 2015 have exceeded expectations, bringing in revenues of $701 million, and the company says it remains favorably positioned for continued development in the second half with this year.

As well as the purchase for the Tropicana, Penn State opened Massachusetts’ first casino at the end of June. Called Plainridge Park Casino, the establishment that is slots-only onto the racecourse, and reported $6.1 million in gambling revenue in its first week of operation.

Optimal re Payments’ Skrill Takeover to Complete by August 10

Optimal Payments acquisition of Skrill has gotten the go-ahead from British financial regulators, as the payments industry looks to consolidate within the face of increased mobile competition . (Image: totallygaming.com)

NETELLER moms and dad Optimal Payments has announced that its €1.1 billion ($1.2 billion) reverse takeover of Skrill, previously Moneybookers, will be finalized next Monday, August 10, after having the green light from UK monetary regulators.

Optimal received approval to acquire Skrill’s US business from American regulators in June. Both companies provide their payment services to the US that is new online areas.

The deal highlights a time period of consolidation into the digital payments industry, as competition increases and innovation that is mobile disruption result in the pooling of resources attractive. A month after the Optimal deal was announced in April, Skrill completed the acquisition of UK competitor Ukash.

The launch of Apple’s ‘wave and pay’ system on iPhone has spooked the digital wallets industry, which views the incursion of large non-traditional payment service provides into the re payment area being a very troublesome threat. The ‘wave and pay’ system allows users to load credit card details onto their device, acting as a de facto e-wallet.

‘ Not Really a Defensive Move’

Optimal real-money-casino.club Payments has denied that the acquisition is a defensive move, citing growth that is steady. Instead, analysts have said the enlarged company, which marries two of the UK’s biggest digital re payment services, will benefit from greater scale. It’s estimated the group that is combined have a cash flow of around £117 million ($182 million); Optimal’s standalone figure is around £58 million ($90 million).

The deal will alleviate both companies’ reliance on the online gambling industry, consolidating their more main-stream ecommerce interests.

‘We’re becoming more appropriate in the e-commerce space and we come across organic growth both there and in gaming following the deal,’ Joel Leonoff, chief executive of Optimal, insisted recently.

Optimal also would like to minimize its present reliance upon an unnamed Asian customer, which reportedly now represents over 33 per cent of the company’s sales.

Online Gaming Payments Giant

‘Over days gone by four years, we have effectively delivered significant growth in profits and earnings for the investors,’ said Leonoff. ‘This growth lead from executing our strategy to generate high degrees of natural growth and also to supplement this with accretive acquisitions.

‘The acquisition of Skrill will produce a tech that is global within the fast growing digital payments space so we think represents a transformational leap forward that greatly accelerates our strategic plan. The Optimal Payments management team is extremely stoked up about the prospects that are future the business.’

NETELLER was formed back in 1999, at the time that is same PayPal. But while PayPal shied far from the grey legal area of on line gambling in America, NETELLER embraced it.

By 2005, the business was processing 80 % of on line gambling transactions globally, which accounted for 95 percent of its revenue stream, but was forced to take out of this US market completely after UIGEA made the processing of online gambling deals illegal.

Gaming Industry Wishes to See Regulation of Daily Fantasy Sports

Yahoo has joined a growing number of major businesses wanting to break into the fantasy that is daily industry. (Image: Eric Risberg/AP)

FanDuel and DraftKings have actually turned fantasy that is daily from a little niche item to the quickest growing segment regarding the fantasy sports industry.

Now, aided by the valuations of each of these businesses reaching $1 billion or more, the gaming industry is beginning to take notice, with some believing that the daily fantasy games deserve the same sorts of strict regulation casino companies deal with on a regular basis.

In accordance with officials at many gaming that is major, there’s absolutely nothing really wrong with daily dream sports (DFS), and they do not wish to see the offerings banned or restricted through the marketplace.

However, they genuinely believe that legislation is an important part of any sort of gambling product, one thing they feel relates to DFS sites just as much as it does a casino or racetrack.

‘we think daily fantasy sports betting should be legal, just like I believe conventional sports betting ought to be legal,’ William Hill US CEO Joe Asher told Reuters. ‘But let us not pretend one is OK while the other is maybe not. Drawing some line that is artificial the two makes no sense as being a matter of law or policy.’

DFS Embraced by Leagues, Media Titans

All major DFS sites suggest that their tasks are totally legal, and both DraftKings and FanDuel stay out of five states where they feel laws do not allow fantasy sports games to supply real money prizes.

That argument appears to have lots of sway, as sports leagues and media organizations are both getting on board en masse: most leagues now have partnerships with more than one web sites, ESPN has a major advertising and content deal with DraftKings, and both Yahoo and CBS have launched their own DFS services and products in recent weeks.

But you will find people who are having a better look at the industry that is growing.

In Nevada, the state gaming control board is analyzing the legality of DFS games, although the industry believes it is quite clear that the contests are legal under a fantasy sports exemption within the 2006 Internet Gambling Enforcement that is unlawful Act.

‘When you start offering fantasy that is daily, then you start to blur the line between skill and chance,’ said Nevada Gaming Control Board Chairman AG Burnett. ‘ When chance begins to govern the outcome more than skill, a form is had by you of gaming, and that’s if the need for regulation kicks in.’

Lobbyists for the fantasy activities industry dispute that characterization, nevertheless, saying that their games are clearly more about skill than luck.

‘ They’re in contrast to games of chance, where in spite of how skillful the players is, winning or losing typically precipitates to fortune,’ stated Jeremy Kudon, someone at Orrick who lobbies for the Fantasy Sports Trade Association.

For their part, FanDuel and DraftKings issued a joint statement for the Reuters report.

For the reason that declaration, they stated on the fantasy sports industry as our products are fundamentally separate from, and not competitive with, gambling enterprises and gaming companies. which they work dealing with officials into the video gaming industry ‘to educate them’

Legal Actions Target Free Money Marketing Promotions

But there are other threats towards the industry too.

DraftKings is facing class action lawsuits in at least three states, including Massachusetts, Florida, and Illinois, from players whom feel they were deceived by the business’s aggressive advertising campaign, particularly due to misunderstandings over the nature of just how deposit bonuses work.

And while the Fantasy Sports Trade Association believes fantasy that is daily must be legal and never constitute gambling, even they’ve expressed issues throughout the advertising promotions used by the two major web sites.

‘The money motivation had been never a important element of dream sports,’ stated FSTA President Paul Charchian. ‘ Now a lot of the marketing in daily fantasy sports is truly extremely concentrated on monetary gain.’

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